The question of whether Canadian telecommunications company BlackBerry Ltd. (TSX:BB)(NYSE:BBRY) has what it takes to become a blue chip software company in the near future may be not be the question many investors ask; some may say it is simply a matter of time for the former smart phone maker, as the tech company reported solid second quarter earnings of $19 million U.S., a significant jump from a loss during the same quarter last year.
The earnings results for BlackBerry shocked the market, with shares trading sharply higher, closing the day nearly 13% higher than Wednesday’s close. Year to date, BlackBerry’s share price remains approximately 15% higher than this same time last year, and this recent jump has put the company’s stock price in a position to potentially end the year higher than in 2016.
The strength of BlackBerry’s software business has shone through, and the company’s operating margin (and now profit margin) speak for themselves as proof that the turn around is real, and a long-term argument can be made that BlackBerry will be able to thrive in an economy driven by software and safety – a trend made even more apparent following the recent hack of Equifax Inc. (NYSE:EFX).
Profitability is a good thing, and the fact that BlackBerry is beginning to show signs it will be able to stand on its two feet is very encouraging for long-term investors hoping for a return on their investment. At this point in time, while not yet a blue chip tech stock, BlackBerry remains one on my watch list moving forward.
Invest wisely, my friends.
Tech Insider
